Money

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So you’re counting down to the next pay day just a few days after your salary was deposited into your bank account?   

You may have made this complaint yourself: prices are going up but our salaries are the same. Feeling sorry for ourselves may is easy, but is unproductive. It only allows us to make excuses instead of taking the steps needed to overcome our financial challenges.  

If you need some ideas for saving money, you’ve come to the right place. Here are some ways to cut down on expenses and uncover extra cash that we can save for a rainy day.

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According to Bank Negara Malaysia, Malaysians have an average debt to income ratio of 89% (as at 2016). That means that Malaysians would have 11% left for living expenses that aren’t tied up in loans and monthly payments. The acceptable figure for household debt to income ratio is actually at 30%, leaving 60% of income to be saved and enjoyed. 

If you’re asking why this is bad if you’re surviving so far, then you may not be ready for emergencies and retirement. Working towards a manageable debt to income ratio, or even just clearing your debt completely can take a huge weight off your shoulders. You’ll be free to make the most out of life without worrying about how to make ends meet.

Take the time to sit down, breathe, and focus on improving your bank balance. Whether you owe RM100 or RM10,000, follow these tips to clear your debts.

You’re in your 20s, which means you’ve just finished university and are just starting out in your career, or have been in the workforce for a few years now. Old age and retirement are decades away, you say, so you’re not thinking about being financially savvy right now.

Nevertheless, it’s not too early to start thinking about developing good money habits. First, you’ll be able to void building up debt and putting your future self into financial trouble. Second, your future self won’t have to work so hard to be ready for retirement.